2. Elements of Business
2.1. Recordkeeping & Accounts
A business cannot be managed effectively unless accurate and up-to -date
informat ion is readily available.
This could include the following information
? Customer details, such as name and shipping address .
? Details of orders placed, such as the item description and shipping
? Inventory and stock lists .
? Details of arrange ments in place, such as regular ma intenance
? Product specifications and informat ion.
Financia l records inc lude details of payments, receipts, assets held, purchase
and sale transactions, and other items such as depreciation rates.
In a cash flow-based service business, accounts may supply reflect cash
receipts and cash payments, with net profit being the e xcess of receipts above
When assets are held within the business, additional comp le xity arises from
depreciation values, intangible assets and so on.
2.1.1. Uses of Accounts
Accounting and other financia l records are needed to effectively manage and
operate a business.
This may ta ke the form of reports of transactions that have occurred over
various time periods.
Reports of non-financial in formation , such as the number of new customers,
the number of customer cancellations , and the volumes of goods produced,
may a lso be needed on a regular basis.